Navigant Research predicts all-electric EVs will be cost-competitive with gasoline cars by 2025
Written By: Stratton Report
January 11, 2017
On January 11, Navigant Research announced it prediction that by 2025, more than 68 million light duty hybrid EVs, plug-in hybrid EVs, & battery-only EVs will be in use globally.
The research firm emphasized that the market for light duty vehicles is poised for change due to advances in battery energy density and cost, as well as coming innovations in connected and autonomous vehicle systems. Around 2025, Navigant expects that fundamental technology and industry trends are expected to enable BEVs to be cost competitive against conventional vehicles without subsides, underlining the likelihood that light duty vehicles will eventually be electric rather than any other alternative.
Scott Shepard, senior research analyst with Navigant Research noted:
“Battery cost reductions are having dramatic impacts on BEV cost and range, portending significant market growth in the years ahead. Further battery innovations alongside vehicle automation promise to significantly disrupt the nature and business of transportation, although this process will take decades to come to full fruition.”
According to Navigant, long-range BEVs appear positioned for success as prices become competitive with economy brands after subsidies. This marks a milestone that could move BEVs from niche to mainstream, especially as the over 400,000 preorders of Tesla’s Model 3 indicate that the affordable 200-plus mile BEV could have a big impact on the vehicle market.